Property Claim Services (PCS) has issued its first industry loss estimate for catastrophe events under its PCS Turkey catastrophe loss aggregation and industry loss estimation service. The combined loss estimate across two terrorism insurance related incidents is TRY 510 million (approx. $140 million).
PCS has consolidated two loss events, which we previously covered here, that occurred last year after damage was caused by the Turkish government’s response to terror incidents in Ankara. Government response to terror attacks is covered under typical terrorism insurance clauses in property insurance policies, although we understand PCS identifies them as falling under a peril classification of fire, explosion, riots and civil disorder.
The background to the events is that after terrorist explosions in Ankara, Turkey on the 13th March 2016 the government of the country declared martial law in the towns of Sirnak and Nusaybin. Skirmishes and fighting occurred between government forces and opposition groups in both of those towns and some of the surrounding area, resulting in casualties and losses to insured property.
Initially two catastrophe events were designated under PCS Turkey (which is a collaboration between PCS and the Istanbul Underwriting Center) methodology and the claims aggregation and industry loss reporting process began.
Now, PCS has consolidated what were catastrophe series 1611 and 1612 under the single catastrophe code 1613.
The insurance and reinsurance sector loss is estimated at 510 million Turkish Lira, which roughly converts to US$140 million, with damage recorded from Cresta Zones 14 and 15 and the bulk of the industry loss from 15.